Malawi President signs law to unbundle Escom: New power generation company Enginco registered

Minister of Natural Resources, Energy and Mining Bright Msaka has disclosed that President Peter Mutharika has signed into law a bill that seeks to unbundle Escom and a new power generating cmpany has been set up.

President Mutharika signs law to unbundle Escom

Msaka said this on Wednesday amid calls for efficiency at Escom following persistent power blackouts. Msaka said the government has since registered and set up a new company born out of Escom whose responsibility would be to generate power and sell to Escom which will now be responsible for supply and distribution to cients.

“The new company, Enginco will be independent of Escom and will take over Nkula, Tedzani, Kapichiri and other small hydro power stations,” Msaka said.

He backed Escom for the current state of electricity, saying this was due to low water levels in Shire due to erratic rains.

Msaka said things would be improve in two years time when the private sector will now be able to supply solar, wind and hydro power through the Escom grid.

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This article leaves too many obvious questions unanswered. What kind of company will Enginco be – a parastatal organization, a private company, or some kind of combination of the two? What are the expected positive outcomes of this separation of responsibilities? Who will benefit financially? It seems that nowadays the prudent capitalist is someone who can turn a calamity into an opportunity. Our calamity is the drought that has reduced our harvests as well as our ability to generate electricity, and no doubt there are those who can legitimately profit from the shortfall in ESCOM’s supply by providing alternative sources… Read more »

I hope this will indeed help rather than just increase bureaucracy and the cost of supply — more CEOs, FDs, etc. The power system is just too small to justify such separation. And, I hope the government and its advisors are certain they will attract credible private investor in generation, at competitive tariffs. Learn from developments in neighboring countries.